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World Bank to Lend $100m to Develop Ayeyarwaddy Basin

The World Bank (WB) will provide a loan worth $100 million (K100 billion) to develop the Ayeyarwaddy basin, a project which will be jointly handled by the Department of Water Resources and the WB, said U Sein Tun, director of the department.

The project team, which comprises academics and government officials, submitted the loan request to the World Bank last year.

The team also prepared the draft of the environment and social management framework, which was approved by the national assembly – clearing the way for the project to begin.

The first part of the loan is expected to be disbursed in December with the project kicking off in January next year.

“The World Bank will issue a no-interest loan for the Ayeyarwady Basin Development Project. Only a 0.75 percent service charge will be added. … The funds will be divided into phases of 30 percent based on each component of the project. The project is expected to take six years,” U Sein Tun said.

The framework was drafted in accordance with the policy regulations of the World Bank. The project will streamline inland water transport and build weather information centres, which will monitor the impact of climate on the people living in the areas along the river, he said.

“The project is based on the assessments of the project’s impact on the socio-economics of the basin. The loan does not have to be repaid for 10 years. We have models to evaluate a country’s potential to fulfil its financial liabilities, whereas Myanmar has a good credit rating,” said Abdoulaye Seck, World Bank country manager for Myanmar.

The project will be implemented in three stages include elements such as support systems for water resource management teams, capacity building, improving information systems and safeguarding transportation routes along the Ayeyarwaddy river.

Irrawaddy River is not an International River

Environmental activists have rejected a government body’s designation of the Irrawaddy River as an “international river,” saying the trans-border status could invite undue influence on the river by neighboring countries, The Irrawaddy reported.
In a letter, Myanmar’s Directorate of Water Resources and Improvement of River Systems (DWIR) wrote that the Irrawaddy originated from the tributary rivers of Dayin and Xi-ann in China, and another small river from India, and thus was an “international” river spanning the three countries. The letter was included in an invitation to the Mandalay-based environmental NGO Green Activities to attend an event on Friday in Mandalay concerning the Ayeyarwady Integrated River Basin Management project.

Activists argued that the relative insignificance of the tributaries did not warrant the description of the Irrawaddy—which flows across more than 1,300 miles in Myanmar and sustains livelihoods for millions of Myanmar people — as an international river.

“If they use [terminology] like this, someday, every time we talk about the Irrawaddy, we will have to negotiate with those two countries. The Chinese are saying the Irrawaddy is a part of China because they want to resume the Myitsone dam project. Such usage is intolerable,” said Tin Thit, president of Green Activities.

The activists said they raised their disagreement on the designation by distributing pamphlets and statements at the Ayeyarwady Integrated River Basin Management (AIRBM) event, condemning the DWIR assertion.

The program development objective for the Series of Projects (of which the AIRBM will be the first) is to strengthen integrated, climate resilient management and development of the Ayeyarwady River Basin and national water resources. The project development objective of the AIRBM is to contribute to the development of integrated river basin management on the Ayeyarwady river.

Project Description
A multi-phased approach (Series of Projects) is proposed that will focus, in the first phase, on developing the institutions and tools needed to enable informed decision making in the management of Myanmar’s national water resources and to implement integrated river basin management on the Ayeyarwady, while immediately enhancing the river’s productivity with “low/no/low regrets” investments in the hydro-meteorological observation system and services (to support agricultural productivity and water-related disaster risk management) and in navigation enhancements (to promote sustainable transportation) on the Ayeyarwady. The project would also support a prompt and effective response to potential crises and emergencies. The project design includes three inter-related investment components plus a contingency component to allow for rapid reallocation of funds if emergencies arise.

Ayeyarwady Integrated River Basin Management (AIRBM) - Component 1

1.1 Institutional Development (USD 10.5 million):
This sub-component will support
(a) design and construction of a new NWRC Secretariat and HIC headquarters facility in Mandalay, immediate refurbishment of associated office space in Yangon and Nay Pyi Taw, and provision of office furnishings and equipment;
(b) development of the NWRC institutions, mandates, business plans, staffing strategies and operational procedures, as well as institutional, legal and regulatory reviews and reforms relating to water resources management, and
(c) capacity building, including possible twinning arrangements.

1.2 Ayeyarwady River Basin Master Plan and Decision Support System (DSS) (USD 10 million):
This sub-component will provide immediate guidance on investment options while also developing the tools and processes needed to ensure the government has ongoing capacity to plan and manage its national water resources. A phased approach will be taken to plan integrated development of the Ayeyarwady River, based on sufficient understanding of opportunities and risks and guided by agreed Basin Development Objectives. Activities will include
(a) development of the Ayeyarwady Integrated River Basin Master Plan, the development of a DSS that will become the primary knowledge asset of the HIC, and stakeholder consultations to identify Basin Development
Objectives,
(b) implementation of groundwater and sediment surveys, and
(c) implementation of a Basin-wide Strategic Environmental and Social Assessment (SESA).

1.3 Preparation of Future Investments (USD 7 million):
This sub-component will support preparation activities for priority investments that may be financed under future phases of this Series of Projects. It will finance feasibility studies, procurement and safeguards related activities, workshops and study tours and other activities as agreed between the WBG and GoM. It will not finance detailed design work. This financing will create an incentive to develop projects within the NWRC framework – to identify, and prepare projects to international quality standards, within an integrated basin framework and in accordance with basin wide development objectives. To be eligible for PFI funding, a project must be consistent with the Ayeyarwady Basin Master Plan (Subcomponent 1.2a) and with the Bank’s engagement objectives in Myanmar.

1.4 Implementation Support (USD 4.5 million):
This sub-component will provide funds for
(a) consultant and advisory services for the Project Management Unit (PMU) including for financial management, procurement, safeguards and monitoring and evaluation,
(b) incremental operating costs, and
(c) project-related communications and outreach as well as the creation of a Stakeholder Forum that will be an important mechanism for consultation during the implementation of this Project and sustained thereafter as a platform for stakeholder engagement with the NWRC.
Source : http://www-wds.worldbank.org/externa...000P146482.pdf

Ayeyarwady Integrated River Basin Management (AIRBM) - Component 2

2.1 Institutional and Regulatory Strengthening, Capacity Building and Implementation Support (USD 6 million): This sub-component will support
(a) institutional strengthening including the development of a robust legal and regulatory framework,
(b) capacity building and training for staff, and
(c) technical assistance in systems design, integration and operations as well as Component 2 management and monitoring.

2.3 Enhancement of Hydromet Service Delivery Systems (USD 7.05 million):
This sub-component will support the strengthening and delivery of hydromet information services in order to ensure project benefits are realized across the range of stakeholders. This will likely include
(a) creation of a Service Delivery Platform for weather and hydrological services,
(b) support for disaster risk management (DRM) operations including expansion of "end-to-end" early warning systems in small river basins with floods and flash floods,
(c) development of an Agricultural and Climate Advisory Service (ACAS), and
(d) the creation of a National Framework for Climate Services.
Source : http://www-wds.worldbank.org/externa...000P146482.pdf

Ayeyarwady Integrated River Basin Management (AIRBM) - Component 3

3.1 Navigation Improvements (USD 30.35 million):
This sub-component will support navigation improvements to increase water levels during the low water season for both passenger and cargo vessels, primarily along the busiest stretches of the Ayeyarwady river. This sub-components activities will include:
(a) 1-dimensional and 2-dimensional river modeling to identify the scope of works for river navigation enhancements, sedimentation modeling which is essential for effective operations and maintenance, preparation of detailed design documents, cost estimates and bidding documents, and supervision of construction work;
(b) preparation of an Environmental and Social Impact Assessment (ESIA), including site-specific Environmental and Social Management Plans (ESMPs), and if needed site-specific Resettlement Plans and Indigenous Peoples Plans, for the proposed enhancement works; and
(c) construction of the enhancement works. The scope of works will initially focus on the Mandalay – Nyaung Oo section of the Ayeyarwady River and will be expanded to other critical stretches between Nyaung Oo and Yangon.

3.2 Navigation Aids (USD 3.4 million):
This sub-component will support
(a) the purchase and installation of navigation aids such as buoys, signage, modern GPS mapping, communications systems (requiring survey boats, echo-sounding equipment and radar) and the installation of lighting and signage systems to enable night time navigation on the Mandalay – Nyaung Oo section of the River; and
(b) a strengthened river pilot system to enhance safety and facilitate efficient navigation along the Mandalay – Yangon section of the Ayeyarwady.

3.3 Water Quality Monitoring (USD 2 million)
This component will support the design and piloting of a water quality monitoring system.

3.4 Institutional Strengthening and Implementation Support (USD 2.1 million)
This component will support
(a) Component 3 implementation costs,
(b) a fleet optimization study to improve transport efficiency by ensuring that fleet development is well suited to the river, and
(c) capacity building, training and communications and awareness raising activities related to the Project-sponsored river improvements and new information, regulations and procedures.
Source : http://www-wds.worldbank.org/externa...000P146482.pdf